India Glycols Ltd (INDIAGLYCO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

TGV Sraac

I G Petrochems

Indo Borax & Ch.

Andhra Sugars

J.G.Chemicals

India Glycols

Amines & Plast.

Fischer Medical

Grauer & Weil

Chemplast Sanmar

Thirumalai Chem.

Why is India Glycols Ltd ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 8.62%

Poor long term growth as Net Sales has grown by an annual rate of 8.63% and Operating profit at 18.75% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.60 times

The company has declared Positive results for the last 6 consecutive quarters

ROCE(HY) Highest at 11.79%
OPERATING PROFIT TO INTEREST(Q) Highest at 6.73 times
DEBT-EQUITY RATIO(HY) Lowest at 0.58 times

With ROCE of 10.8, it has a Very Attractive valuation with a 0.8 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 67.78%, its profits have risen by 30% ; the PEG ratio of the company is 0
At the current price, the company has a high dividend yield of 4.3

Despite the size of the company, domestic mutual funds hold only 0.56% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to India Glycols should be less than 10%
Overall Portfolio exposure to Commodity Chemicals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Commodity Chemicals)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is India Glycols for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

India Glycols

64.23%

1.67

38.55%

Sensex

-5.67%

-0.42

13.40%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.63%

EBIT Growth (5y)

18.75%

EBIT to Interest (avg)

2.60

Debt to EBITDA (avg)

3.55

Net Debt to Equity (avg)

0.56

Sales to Capital Employed (avg)

0.92

Tax Ratio

22.76%

Dividend Payout Ratio

13.41%

Pledged Shares

Institutional Holding

7.46%

ROCE (avg)

8.60%

ROE (avg)

8.69%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.64

EV to EBIT

6.95

EV to EBITDA

5.25

EV to Capital Employed

0.77

EV to Sales

0.82

PEG Ratio

0.01

Dividend Yield

4.34%

ROCE (Latest)

10.80%

ROE (Latest)

10.00%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Bullish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

16What is working for the Company

ROCE(HY)

Highest at 11.79%

OPERATING PROFIT TO INTEREST(Q)

Highest at 6.73 times

DEBT-EQUITY RATIO(HY)

Lowest at 0.58 times

NET SALES(Q)

Highest at Rs 1,130.39 cr

PBT LESS OI(Q)

Highest at Rs 122.50 cr.

PAT(Q)

Highest at Rs 96.83 cr.

EPS(Q)

Highest at Rs 14.45

-1What is not working for the Company

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 49.83 cr

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Here's what is working for India Glycols

Operating Profit to Interest - Quarterly

Highest at 6.73 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales - Quarterly

Highest at Rs 1,130.39 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 122.50 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 122.50 cr has Grown at 31.3% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 93.28 Cr

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 96.83 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 96.83 cr has Grown at 32.0% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 73.34 Cr

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 14.45

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Debt-Equity Ratio - Half Yearly

Lowest at 0.58 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for India Glycols

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 49.83 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents